Biggar said a contract has been awarded to a private developer to build and finance the project, the 20th biomass heating plant on the Island since the provincial government began converting public buildings back in 2012.

"It also reduces our emissions here on Prince Edward Island, but this is going to displace over three million litres of oil use in total with all of our biomass plants, and about nine thousand tonnes as part of our greenhouse gas reductions," said Biggar.

The government says the new wood chip furnace in Summerside will be in operation later this year and another biomass furnace is scheduled to begin operation at Morell High School.